Byun Jong-oh, president of KCC Glass, has proposed an expansion of subsidized industrial natural gas pricing (HGBT) to the Indonesian government. The move aims to secure favorable gas supply conditions in advance of a planned local glass factory expansion, accelerating the company’s strategy to target Southeast Asia and global markets with enhanced price competitiveness.
According to the Indonesian Presidential Palace on the Apr 29th, Byun attended a luncheon meeting hosted by President Prabowo Subianto at the Merdeka Palace in Jakarta the previous day, where he explained the need for additional HGBT benefits. This request is not for additional support for existing operations but rather a preparatory measure for future expansion investments.
Indonesia’s HGBT program, managed by the government, provides natural gas to qualifying industrial companies at prices lower than market rates. This year, the HGBT price is set at a maximum of $6.50 per MMBtu (million British thermal units), which can be up to 40% cheaper than general market prices.
KCC Glass is already a beneficiary of the HGBT program. Early last year, Indonesia’s Ministry of Energy and Mineral Resources (ESDM) selected KCC Glass as one of seven companies eligible for HGBT support. While the government initially excluded export-focused businesses from the program, KCC Glass was granted an exception due to its contributions to domestic investment and job creation.
In 2021, KCC Glass invested approximately $300 million to construct a 113.7-acre glass factory in the Batang Industrial Estate in Central Java. The facility was completed in October last year, followed by a furnace ignition ceremony. After a heating period, the plant began full-scale commercial production of flat glass in December. Currently, one production line is operational.
The Indonesian factory is KCC Glass’s first overseas base. The company plans to invest an additional $490 million in stages to expand the facility, transforming it into an “integrated glass cluster” for global market penetration.
The Batang plant has an annual production capacity of approximately 440,000 tons of architectural flat glass, with a maximum daily output of 1,200 tons. In addition to flat glass, the company also plans to produce automotive glass.
